UniCredit Agrees to Sell $1.3 Billion of Bad Loans to AnaCap

  • Sale includes corporate, individual non-performing loans
  • Financial impact to be reflected in UniCredit 3Q earnings

UniCredit SpA agreed to sell 1.2 billion euros ($1.3 billion) of non-performing Italian corporate loans to AnaCap Financial Partners LLP as part of its plan to reduce non-core assets and improve its credit profile.

The package UniCredit is selling has a gross book value of 670 million euros and includes secured and unsecured defaulted loans to small and medium-sized firms, the Milan-based bank said in a statement Monday.

Banks in Italy, including UniCredit, are accelerating sales of non-performing loans amid revived interest from investors. The government has introduced laws making it easier for creditors to seize assets, while Italy’s expanding economy is raising expectations of higher returns on recovery efforts.

The transaction is UniCredit’s fourth asset disposal this year, UniCredit said in the statement. The financial impact will be reflected in third-quarter results, it said without giving details.

The deal “represents a signal that the market for Italian banks NPLs is moving,” Andrea Filtri, a London-based analyst at Mediobanca SpA who has an outperform recommendation on the stock, wrote in a note.

UniCredit has sold more than 7 billion euros of bad loans in the past three years as it targets at least 2 billion euros in annual sales, people familiar with the matter have said. Chief Executive Officer Federico Ghizzoni, 59, who is revising a business plan introduced last year, is cutting costs and curbing risk to strengthen finances.

AnaCap is a London-based private-equity firm that targets financial-services assets. It was founded in 2005 and advises on 2.6 billion euros of funds and also co-invests, according to its website.

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